Venezuelans buying rice from Guyana – in private arrangement.
December 8, 2016 Source
THE exportation of rice from Guyana to Venezuela is ongoing, Minister of Agriculture Noel Holder confirmed Wednesday evening. The arrangement is a private-to-private one, he said.
“Yes. Not government to government, but private to private,” the minister said, when asked by this publication if exports had resumed.
He noted that the process has been ongoing for the last four to five months, and involves buyers coming to Guyana with hard currency, buying rice from millers, and taking it back to Venezuela.
Minister Holder revealed that since this resumption, at least 10,000 tonnes of rice has been exported to the neighbouring country, and this figure is increasing.
“I can’t predict how much more will be exported, but it is increasing,” he confirmed.
Head of the Guyana Rice Development Board (GRDB), Dharamkumar Seeraj, concurred with the minister that rice was being exported privately.
However, he noted that the economic turmoil currently being experienced in Venezuela is not one which gives “confort.” As a result, the GRDB has been making efforts to collect payment for rice which will be exported before the rice is actually exported. He acknowledged though, that the board has not been able to achieve much in this regard but remain committed to trying.
The Guyana Chronicle understands that millers who are shipping rice to Venezuela are receiving approximately US$550 per tonne, which will allow the millers to pay rice farmers between GY$2500-$2700 per bag of paddy.
Guyana’s relationship with Venezuela has been tense of recent, with President David Granger making strong statements at the United Nations General Assembly and to Parliament, condemning Venezuela’s aggression on the border controversy. Guyana is insisting on a juridical settlement to the border controversy, in which Venezuela claims that the arbitral award which settled the two countries’ borders is null and void.
The political and social upheaval in oil-rich Venezuela has worsened in recent months, with a recession leaving millions unable to find or afford food amid shortages and spiralling inflation.
The shipping of rice from Georgetown to Caracas is expected to help alleviate the challenges faced by Venezuelans in accessing basic food items. Shipments are expected to continue and this is expected to further boost the rice industry in Guyana.
One industry insider has noted that this development is likely to provide a boost to small rice farmers, as millers will not be looking to them to augment their supply to meet the demand for rice from Venezuela.
Meanwhile, Minister Holder also revealed that a Mexican team will be coming to Guyana in January to hammer out a rice deal between the two countries.
“They [the Mexican team] just got the clearance for the phytosanitary arrangement between the two countries. A team will be coming in January” he said, adding that Mexico’s demand is 1.8 million tonnes, while Guyana can produce only 600,000.
